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SECOND QUARTER 2015

Year-on-Year Inflation Rates, All Items

Area

Second Quarter 2015

First Quarter 2015

Second Quarter 2014

Year-to-date

Philippines

2.1

3.1

6.5

2.6

NCR

-0.1

1.5

6.1

0.7

AONCR

2.1

3.1

6.5

2.6

Inflation for the bottom 30% income households in the Philippines decelerated to 2.1 percent in the second quarter of 2015. It grew by 3.1 percent in the first quarter of 2015 and 6.5 percent in the second quarter last year. This was primarily brought about by the negative annual rate recorded in the fuel, light and water (FLW) index. Slower annual increases in the food, beverages and tobacco (FBT), clothing, housing and repairs (H&R) and miscellaneous indices registered during the quarter also contributed to the downtrend.

Inflation in the National Capital Region (NCR) dropped by 0.1 percent in the second quarter of 2015. It was pegged at 1.5 percent in the previous quarter and 6.1 percent in the second quarter of 2014. This was mainly attributed to the double-digit annual decrease in the FLW index during the quarter. Lower annual growths were also noted in all the other commodity groups except in the services index.

Inflation in Areas Outside the National Capital Region (AONCR) improved to 2.1 percent in the second quarter of 2015. Last quarter, the annual growth was 3.1 percent and in the second quarter of 2014, 6.5 percent. This was due to the annual decline observed in the FLW index and slower annual increments in all the other commodity groups except in the services index.

Quarter-to-Quarter Inflation Rates, All Items

Area

Second Quarter 2015

First Quarter 2015

Philippines

0.3

-0.1

NCR

-0.3

-0.8

AONCR

0.3

-0.1

The country’s quarter-to-quarter movement of prices for the bottom 30% income households increased by 0.3 percent during the second quarter of the year. This was effected by higher prices in selected food items such as calamansi, ginger, corn, fish, shrimps and crabs in many regions. Likewise, price hikes in kerosene and higher rental rates of dwellings were observed in many provinces.

Year-on-Year Inflation Rates in the Philippines, All Items

First Quarter 2007 - Second Quarter 2015

Quarter

Year

2007

2008

2009

2010

2011

2012

2013

2014

2015

1st

3.4

6.9

12.3

4.2

4.6

2.7

3.5

5.7

3.1

2nd

2.8

14.3

5.5

3.5

5.4

2.4

3.1

6.5

2.1

3rd

2.7

19.3

0.2

3.7

5.2

3.1

3.5

6.8

4th

4.1

15.1

3.4

3.1

5.2

3.0

4.8

5.1

Average

3.3

13.9

5.4

3.6

5.1

2.9

3.7

6.0

By Region, Year-on-Year

Inflation in NCR dropped by 0.1 in the second quarter of 2015.

In AONCR, inflation decelerated to 2.1 percent during the second quarter. All the regions exhibited slower annual upticks except Davao Region which had the same growth of 4.5 percent as the previous quarter. Meanwhile, Central Luzon registered the lowest annual growth of 0.2 percent.

By Commodity Group, Year-on-Year

At the national level, the FLW index went down by 6.2 percent in the second quarter of the year. In addition, the annual mark-up in the heavily-weighted FBT index and H&R index slowed down to 3.1 percent; clothing index, 1.7 percent; and miscellaneous index, 1.3 percent. That for the services index remained at 1.2 percent.

The country’s annual hike in the food alone index eased to 3.1 percent during the period. Last quarter, it was posted at 4.6 percent.

In NCR, a double-digit annual reduction of 11.8 percent was noticed in the FLW index in the second quarter of 2015. Moreover, the annual growth in the FBT index slowed down to 1.8 percent; clothing index, 1.3 percent; H&R index, 0.5 percent; and miscellaneous index, 1.1 percent. On the contrary, the services index moved up at a faster rate of 2.6 percent.

The annual mark-up in the food alone index in NCR improved to 1.8 percent during the quarter. Its annual growth last quarter was pegged at 4.4 percent.

All the food groups had slower annual increases except in the fruits and vegetables index which had a higher annual increment of 7.7 percent.

In AONCR, the FLW index declined by 6.1 percent in the second quarter of 2015. The annual growths also decelerated in the indices of FBT and H&R at 3.1 percent; clothing index, 1.7 percent; and miscellaneous index, 1.3 percent. Quarterly inflation in the services index remained at 1.2 percent.

A slower annual rate of 3.1 percent was seen in the food alone index in AONCR in the second quarter of 2015. Last quarter, it was noted at 4.6 percent.

The rice index registered a lower annual uptick of 2.1 percent in the second quarter as all the regions recorded slower rates.

Compared to a quarter-ago level, prices of items for this particular group of consumers in NCR decreased by 0.3 percent in the second quarter. It was due to the decline in the heavily-weighted FBT index at -0.5 percent. The services index also slowed down to 0.4 percent. On the other hand, the FLW index exhibited a higher growth of 0.6 percent while a zero growth was seen in H&R index. Those for the indices of clothing and miscellaneous remained at 0.2 percent and 0.1 percent, respectively.

Prices in AONCR rose by 0.3 percent in the second quarter of 2015. Faster quarter-on-quarter rates were observed in the FLW index at 0.7 percent; FBT index, 0.3 percent; and services index, 0.5 percent. Meanwhile, movements in the corresponding indices of clothing and miscellaneous at 0.3 percent and H&R, 0.2 percent were slower compared to their respective previous quarter’s growth.

Higher quarterly mark-ups were seen in six regions with Davao Region and SOCCSKSARGEN having the highest rate of 1.8 percent. The lowest quarterly adjustment of -0.4 percent was recorded both in MIMAROPA and Zamboanga Peninsula.

Among the three big areas of the country, price upticks in consumer items in Mindanao were faster compared to those in Luzon and Visayas.

By Commodity Group, Quarter-to-Quarter

On a quarterly basis, prices of consumer items for the bottom 30% income group at the national level inched up 0.3 percent in the second quarter. This was brought about by the increments in the FLW and services indices at 0.7 percent and 0.5 percent, respectively. A higher quarterly growth of 0.3 percent in the heavily-weighted FBT index also contributed to the uptrend. Meanwhile, the rest of the commodity groups had slower quarterly gains.

The miscellaneous foods index in AONCR went up by 2.0 percent and in NCR, 2.2 percent. This was attributed to price hikes in spices such as ginger and calamansi and some seasonings during the quarter. The group’s index at the national level increased by 2.0 percent.

Upticks in the prices of corn in many regions resulted to a 1.5 percent growth in its group’s index in AONCR and in the Philippines during the quarter. The corn index in NCR however, decreased by 7.4 percent.

The fish index in AONCR rose by 0.7 percent. Lesser volume of supplies in the markets pushed prices of crabs, shells and some species of fresh fish in selected provinces during the quarter. On the contrary, the fish index in NCR dropped by 1.6 percent as enough supplies of selected fresh fish species in the markets lowered their prices in the area. At the national level, the group’s index grew by 0.7 percent.

The index for dairy products in the NCR inched up 0.1 percent and in AONCR and in the Philippines, 0.4 percent as prices of milk and milk products were generally priced higher in selected regions during the quarter.

Hot weather conditions that generally prevailed during the second quarter provided favorable environment for egg production. Abundant supply of eggs pushed down its price during the quarter, thus, the eggs index in the Philippine fell by 0.5 percent; in AONCR, -0.4; and in NCR, -3.4 percent.

Chicken were generally priced lower during the quarter in many regions. Hence, the meat index in AONCR dropped by 0.6 percent; in NCR, -1.4 percent; and in the Philippines, -0.6 percent.

With eleven regions registering either negative or slower rates, the rice index in AONCR declined by 0.6 percent in the second quarter. The group’s index likewise went down by 2.0 percent in NCR and in the Philippines, -0.6 percent.

Upward price adjustments in tomatoes and some leafy vegetables observed in selected regions were offset by the price reductions in mango and pineapple, thereby resulting to a 0.1 percent growth in the group’s index in AONCR. In NCR, the group’s index decreased by 2.0 percent as prices of mango, ampalaya and other leafy vegetables were cheaper during the quarter. At the national level, the fruits and vegetables index had a zero growth.

During the quarter, price hikes in kerosene together with higher charges of electricity rates in many regions caused a 0.7 percent growth in the FLW index in AONCR. In NCR, higher water rates in June and the price increase in kerosene pushed up its group’s index by 0.6 percent. At the national level, the FLW index rose 0.7 percent.

Higher medical and dental charges during the quarter generally raised the services index in the three areas: Philippines, 0.5 percent; AONCR, 0.5 percent; and NCR, 0.4 percent. Contributory to the uptrend were tuition fee hikes during the opening of classes in June together with the upward price adjustments in selected school supplies in all regions and price hikes in gasoline in many provinces.

The H&R index in AONCR climbed by 0.2 percent. Upward adjustments in the prices in selected construction materials in many regions and higher rental rates for dwellings in selected provinces were noted during the quarter. The group’s index in NCR however, recorded a zero growth. In the Philippines, the H&R index increased by 0.2 percent.

With increments in the prices for some household goods like floorwax, detergent soap, linen and furniture, the miscellaneous index in NCR gained by 0.1 percent during the quarter; in AONCR, 0.3 percent; and in the Philippines, 0.3 percent.

Higher prices of footwear and selected wearing apparel during the second quarter effected a 0.2 percent growth in the clothing index in NCR; 0.3 percent in AONCR; and 0.3 percent in the Philippines.

Note:

Monthly CPIs for the bottom 30% income households by province and selected cities are also available upon request at PSA, Economic Sector Statistics Services (Telephone Numbers: 716-39-35 and 715-33-47).